|Bid||1.1100 x 0|
|Ask||1.1200 x 0|
|Day's Range||1.0700 - 1.1700|
|52 Week Range||1.0100 - 5.8100|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Namaste Technologies (TSXV: N) (FRANKFURT: M5BQ) (OTCMKTS: NXTTF) has entered into a secured convertible loan agreement with Choklat, a private chocolate manufacturer in Alberta. "We're investing in Choklat to ensure they're able to maximize the pending market opportunity for edibles," stated Meni Morim, the CEO of Namaste. The Green Organic Dutchman Holdings Ltd. (TSX: TGOD) (US: TGODF) unveiled […]The post Cannabis Stock News Daily Roundup October 22 appeared first on Market Exclusive.
TORONTO — Some of the most active companies traded Monday on the Toronto Stock Exchange:Toronto Stock Exchange (16,418.45, up 41.33 points).Aurora Cannabis Inc. (TSX:ACB). Health care. Down one cent, or 0.21 per cent, to $4.80 on 5.1 million shares.The Green Organic Dutchman Holdings. (TSX:TGOD). Health care. Down four cents, or 3.36 per cent, to $1.15 on 4.7 million shares.Encana Corp. (TSX:ECA). Energy. Down six cents, or 1.12 per cent, to $5.29 on 4.6 million shares.Bombardier Inc. (TSX:BBD.B). Industrials. Up three cents, or 1.86 per cent, to $1.64 on 4.3 million shares.Royal Bank of Canada. (TSX:RY). Financials. Up 75 cents, or 0.7 per cent, to $107.70 on 4.2 million shares.Hexo Corp. (TSX:HEXO). Health care. Down eight cents, or 2.22 per cent, to $3.52 on 4 million shares. Companies in the news:The Hudson's Bay Co. (TSX:HBC). Up 58 cents, or 6.1 per cent, to $10.03. The Hudson's Bay Co. board agreed Monday to a sweetened privatization offer that values the retailer at about $1.9 billion, but the deal will require support from minority shareholders if it is to be accepted. The board said a group of shareholders led by HBC executive chairman Richard Baker, which holds about a 57 per cent stake in the retailer, has agreed to pay $10.30 per share in cash to take HBC private. The bid is nine per cent higher than an earlier offer of $9.45 per share by the group, following objections from Toronto-based Catalyst Capital and Land & Buildings Investment Management of Stamford, Conn. Imperial Oil Ltd. (TSX:IMO). Up 55 cents, or 1.7 per cent, to $33.01. The Canada Energy Regulator says exports of crude oil by rail from Canada fell slightly in August to 310,000 barrels per day from 313,000 bpd in July. The August number is up 35 per cent from 230,000 bpd reported in August of 2018 but still well below the record high of 354,000 bpd set last December. The small change in crude-by-rail shipments came despite a threat by Imperial Oil Ltd. CEO Rich Kruger to throttle back the company's rail movements in August and September to protest the ongoing Alberta oil production curtailment program. He says the program damages the economic case for crude-by-rail by artificially lowering the difference in oil prices between Alberta and the end market on the U.S. Gulf Coast.Barrick Gold Corp. (TSX:ABX). Down 59 cents, or 2.6 per cent, to $21.99. Barrick Gold Corp. announced a deal with the government of Tanzania that will see the gold miner pay US$300 million to settle all outstanding tax and other disputes over its mines in the African country. The company and Tanzania are also to share the future economic benefits from the mines on an equal basis and create a dispute resolution framework. The slide in shares came despite the deal announced on Sunday matching the company's key expectations as revealed in an announcement in July, analysts pointed out. This report by The Canadian Press was first published Oct. 21, 2019.The Canadian Press
Each time cannabis companies like Canopy Growth Corp (TSX:WEED)(NYSE:CGC) post earnings, it gives investors a clearer view into the progress the industry is making toward growth and profitability.
The pot industry is growing at a rapid pace, but choosing winning stocks is getting harder. Learn what makes Green Organic Dutchman (TSX:TGOD) a sell and Cronos Group Inc (TSX:CRON)(NYSE:CRON) a buy.
Shares of The Green Organic Dutchman Holdings Ltd. fell more than 16 per cent after the company announced changes to its financing and construction plans due to a smaller-than-expected legal pot market.
(Bloomberg) -- Pot legalization was supposed to eliminate the black market, boost Canada’s economy and enrich investors. It hasn’t quite turned out that way.A year after the country became the first major economy to legalize recreational cannabis, pot stocks have lost more than half their value, retail prices are nearly double those in the illicit market, sales are well below expectations and most companies are losing money.To be sure, creating a national market from scratch was never going to be easy and the highly regulated model has attracted plaudits from around the world. But few in the industry are prepared to call the first year a success, and plenty of challenges lie ahead as new products like vapes and edibles join dried flower on store shelves in December.Below, we separate the reality from the hype ahead of the October 17 anniversary:SalesIn June 2018, four months before legalization, Deloitte LLP predicted that legal pot sales would be as high as C$4.34 billion ($3.29 billion) in 2019. Not so much.Canadians bought C$524 million of legal weed in the first seven months of 2019, according to Statistics Canada. Sales have steadily increased since February as more retail stores have opened, but major suppliers like Aurora Cannabis Inc. have warned that revenue is likely to plateau in the fourth quarter before the new forms of the drug become available for sale.“Probably the biggest disappointment’s been the rollout of retail,” said Bruce Campbell, founder of StoneCastle Investment Management Inc., which manages the StoneCastle Cannabis Growth Fund. “It’ll probably be six or 12 months before we get broad retail, and that trickles down to everything else.”Ontario and Quebec, Canada’s two most populous provinces with nearly 23 million people between them, only have 25 stores each, leaving a large chunk of Canada’s population under served by physical stores.The reasons for the dearth of storefronts are often political. Ontario’s government delayed the province’s store rollout for nearly six months after legalization to consult with stakeholders and develop legislation, and then blamed the federal government for a lack of supply when it limited the initial number of locations to 25.Whatever the reasons, the impact is real. Provinces with more bricks-and-mortar stores had sales per capita nearly 2.5 times higher than their counterparts with fewer stores, according to Eight Capital analyst Graeme Kreindler.PricesAnother reason for slower-than-expected sales is the fact that consumers are being asked to pay nearly twice as much per gram in the legal market than the black market -- for less choice.The average price for a gram of legal pot fell 3.9% to C$10.23 in the third quarter from the second quarter, the first drop since pot was legalized on Oct. 17. But that remains nearly twice as high as black-market prices, according to Statistics Canada.And only dried flower and oils are currently available in the legal market. This leaves the black market to profit from popular formats like edibles and vapes until they begin to hit legal store shelves later this year. A Statistics Canada survey found 42% of pot consumers purchased at least some of their pot from illegal sources in the second quarter.“Eventually the black market will be replaced by the legalized market, but the question is whether that takes two years or five years or 10 years,” Campbell said.Earnings DismayInvestors are hankering for companies that can turn a profit but those are still few and far between. Of Canada’s six biggest companies by market value, five have recently disappointed the market, sending their stock prices tumbling. Here are a few examples:Bruce Linton, perhaps the best-known cannabis executive, was fired in July from Canopy Growth Corp. amid pressure from top shareholder Constellation Brands Inc. to show a faster path to profitability. In its latest quarter Canopy’s revenue declined to C$90 million, below the lowest analyst estimate, and the company said it won’t report a profit for three to five years. Shares fell 14% that day.Aurora Cannabis Inc. raised investor expectations in January when it said it would achieve “sustained” positive earnings before interest, taxes, depreciation and amortization beginning in its fiscal fourth quarter, which ended June 30. Instead, it reported an adjusted Ebitda loss of C$11.7 million and revenue that missed its own forecast. Aurora’s chief financial officer then said revenue growth may “pause” in the current quarter ahead of the rollout of new products. Shares fell 8.9% that day.Hexo Corp. plunged 23% on Thursday after the company said its fourth-quarter and full-year revenue would be well below analyst expectations and withdrew its guidance for fiscal 2020. The move came less than a week after its chief financial officer resigned abruptly after four months on the job, citing family reasons.“The lunch-bag letdown is that there are more companies that are focused on long-term growth than they are on becoming profitable in the near term,” said Charles Taerk, CEO of Faircourt Asset Management, which acts as an adviser for the cannabis-focused Ninepoint Alternative Health Fund. “Building an empire doesn’t necessarily translate to profitability.”Stock RoutLosses haven’t been the only thing weighing on pot stocks. CannTrust Holdings Inc.’s regulatory breach led to the firing of its CEO, a joint investigation by securities regulators and police and the suspension of its cannabis license. It also raised serious questions about the trustworthiness of pot companies and the ability of Canadian regulators to properly oversee the sector.In addition, a growing vaping-related health crisis is generating scary headlines just before the first legal cannabis vapes hit Canadian shelves. All these issues are making it increasingly difficult for companies to raise money, and have cut the value of pot stocks by more than 50% since their recent highs in March of this year.This has been particularly hard on smaller companies that don’t have the capital cushions of their larger peers.“There’s a growing separation between the haves and the have-nots,” Taerk said. “The ability to raise capital is now becoming more challenging for those companies that have not been able to prove their model.”Green Organic Dutchman Holdings Ltd., for example, tumbled almost 40% over two days last week after it said it was unable to secure traditional sources of financing on “acceptable terms.” Without financing, the company said it may be forced to revise its construction schedule for two facilities in Ontario and Quebec.“In order to survive, cannabis companies are left with few good options,” Seaport Global Securities analyst Brett Hundley said in a recent note. “We think a major shakeout is on the horizon.”U.S. OpportunityWhile Canada struggles to develop a functional market post-legalization, the U.S. is quietly eroding its neighbor’s first-mover advantage.U.S. cannabis companies’ stocks have been battered too, but several analysts say they’re likely to rebound faster and further than their Canadian counterparts. The biggest U.S. multi-state operators, or MSOs, are already generating more revenue than many of their Canadian peers, and there are a bevy of potential catalysts around the corner that could send them soaring.“For the U.S. MSO group, we see a completely different set of circumstances in place, and we would broadly recommend that investors rotate away from Canada and towards the U.S.,” Brett Hundley, analyst at Seaport Global Securities, said in a note published Monday.The SAFE Banking Act became the first major piece of pro-cannabis legislation to pass the House of Representatives last month, and many other bills that would make life easier for pot firms are working their way through the legislative process. In addition, major states like New York and New Jersey are expected to legalize recreational use by next year, and many believe it’s only a matter of time before the federal government implements some form of legalization as well.Reasons For OptimismYet changes are coming to Canada’s market which should buoy the industry. Canada’s legal store count is expected to grow significantly in coming months, with Ontario alone set to open 50 new stores beginning later this year.Companies are also hopeful that the addition of edibles, beverages, vapes and topicals to the roster of legal products will attract new consumers and boost their sales and margins.And most of Canada’s big pot producers have established a significant international presence that could help to offset any ongoing weakness in the Canadian market as legalization spreads around the world.“Everyone is so negative on what’s happening but I suspect that will turn because this is and will be one of the fastest-growing businesses in the next 10 years globally,” said StoneCastle’s Campbell. “It’s just a function of who wins and who loses.”To contact the reporter on this story: Kristine Owram in Toronto at email@example.comTo contact the editors responsible for this story: Brad Olesen at firstname.lastname@example.org, Jacqueline ThorpeFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Both Green Organic Dutchman Holdings Ltd (TSX:GOD) and Cronos Group Inc (TSX:CRON)(NYSE:CRON) are set to grow sales rapidly, but one is a potential buy, while the other may face steep hurdles.
Cannabis investments continued to decline in September 2019. Will things change for stocks like The Green Organic Dutchman Holdings Ltd (TSX:TGOD) in October?
The Green Organic Dutchman Holdings Ltd (TSX:GOD) stock plunged after Aurora Cannabis Inc. (TSX:ACB)(NYSE:ACB) sold its remaining stake in the small pot company.
(Bloomberg) -- The Green Organic Dutchman Holdings Ltd. is looking at alternative means to fund the medical cannabis firm’s construction projects after unsuccessful discussions for commercial bank facilities and equipment leasing.The company is “exploring non-bank debt financing alternatives such as issuing bonds or raising private loans,” Green Organic spokesman Sebastien Bouchard wrote in an email.The Toronto-based medical cannabis firm said it’s reviewing funding options in order to complete building its facilities in Ancaster, Ontario and Valleyfield, Quebec, according to a statement. Green Organic said it “may revise the construction schedule” for the projects if it’s unable to secure sufficient financing on reasonable terms within a required time frame.Green Organic says it has no debt and $56.7 million in cash available in Canada, including $40.2 million in restricted cash marked for capital expenditures. The stock fell as much as 24% on Wednesday to C$1.31, a record low. It has now lost three-quarters of its value since its recent high on March 19.Credit financing for pot companies remains relatively rare as most firms are in the process of reaching positive margins out of their core businesses. Still, Canada-listed Trulieve Cannabis Corp. raised $70 million via the first pot bond with a publicly-available prospectus earlier this year while in May, Green Thumb Industries Inc. issued $105 million of senior secured notes in a self-brokered deal.Instead of debt financing, cannabis companies have been offering equity and convertible securities as preferred channels to finance their investment plans. Nonetheless, the industry’s stocks have under performed recently, making issuance more challenging.(Adds stock price decline in fourth paragraph.)\--With assistance from Paula Sambo and Kristine Owram.To contact the reporter on this story: Esteban Duarte in Toronto at email@example.comTo contact the editors responsible for this story: Nikolaj Gammeltoft at firstname.lastname@example.org, Allan LopezFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
TORONTO — The Green Organic Dutchman Holdings Ltd. saw its shares plunge in early trading after the cannabis company said it was reviewing financing alternatives in order to complete construction at its facilities in Ancaster, Ont., and Valleyfield, Que.The company says due to changing market conditions, financing sources have been unavailable on acceptable terms within the timeframes required.Stocks in the cannabis sector have been under pressure in recent months due to various factors, including a slower-than-expected retail rollout and growing concern over a wave of vaping-related illnesses.The Green Organic Dutchman says it has started a review of alternatives.It says it may revise the construction schedule for its Ancaster and Valleyfield projects if it is unable to obtain sufficient financing on reasonable terms, within the required timeframe.The company's shares were down 28 cents or about 16 per cent at $1.53 in morning trading on the Toronto Stock Exchange after falling as low as $1.31.This report by The Canadian Press was first published Oct. 9, 2019.Companies in this story: (TSX:TGOD) The Canadian Press
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